The $30 million toe in the water

The US Producer Price Index (PPI) for final deamnd rose 1.1% in May, marking the fastest annual pace in more than three years, according to the Department of Labor.

The PPI, which tracks prices received by US businesses for goods and services, was up 6.5% compared to a year ago, the largest annual increase since November 2022.

Around 57% of the increase came from rising energy prices, with energy prices rising 10.7% in May, led by a 23.4% increase in gasoline.

Personal consumption goods prices jump 3.5%

Personal consumption goods prices jumped 3.5% in May and were up 11% from a year ago, with prices for residential electrical power falling 1 .1%.

Excluding energy, these prices rose 0.3% and were up 2.9% annually.

The producer price index tracks prices received by US businesses that sell goods and services to consumers in the US and abroad, other businesses, and governments.

Core producer prices rise 0.4%

Core producer prices rose 0.4% in May, with core goods prices rising 0.8% and core services prices rising 0.3%.

Over the past 12 months, core prices are up 4.9%.

The index for final demand excluding foods, energy, and trade services rose 0.8% in May, the biggest jump since increasing 0.9% in March 2022.

The PPI's 'super core' index rises 5.1%

The so-called 'super core' index, which excludes foods, energy, and trade services, rose 5.1% over the past 12 months, the largest 12-month rise since the 5.5% rise recorded in October 2022.

The index for processed goods for intermediate demand increased 3.5% in May, the largest incrase since 2021 .

Over 60% of the broad-based May increase can be attributed to a 10.4% jump in prices for processed energy goods.